Selling Your Car Vs. Getting A Title Loan

When in need of fast cash, it’s not uncommon for people to make rush decisions that they often regret afterwards. This is completely normal as under stress; we as humans don’t always think our decisions through. In cases where one is strapped for money, one doesn’t have to go pawning everything they have; jewelry, family heirlooms and certainly not your car. Why not opt for a title loan instead?

Having a car vs. not having one

You’re probably wondering why this a more suitable option than selling your car. Think about this. If you sell your car, what will you use? You’ll definitely have trouble moving from place to place. On the other hand, taking a title loan is a fast way of getting money without having to sell your car.

Time period to sell a car vs. time period to get a title loan

How long will it take to find a buyer for your car? Even you find one fast enough; chances are you will have to sell the car for less than it is worth simply because you’re running out of time. Or because you don’t think there are other avenues to get money fast. In other cases, you won’t get a buyer at all. On the contrary, title loans offer a faster way of getting money without all the hassle of having to market your car. You don’t have to undersell your car either.

When applying for a title loan, the lender is mostly interested in the value of your car. This helps to gauge the amount of money that you can borrow. It also helps to decide on the length of the repayment period as well as what the total payment will amount to. This process may take up to a week at most.

Qualification

Nothing much is required of you other than meeting a set of basic eligibility requirements. Generally, these would be ownership of a car and source of income. As you already have a car, proving you have a source should be easy. The proof of income acts an assurance to the lender that you’ll make repayments as required. No one wants to lend money to someone who can’t prove their ability to pay back. The car is a physical assurance that should you fail to repay the loan, the lender will not incur a loss. Proof of insurance and a copy of your ID are sometimes required as proof of identity.

Car title loans are not traditional loans

Some would rather sell their assets because the idea of a loan sparks a lot of thoughts, most of which are negative. The lengthy process associated with a loan application, credit checks, hidden fees and the possibility of not qualifying for one are discouraging. Much as it is a loan like any other, there are fewer requirements to qualify for a title loan. There are no hidden fees to worry about either. It is a simple straightforward way of getting money and serves your needs better that selling your car.

Choose wisely

The decision to take a loan is not one to be taken lightly. And while in some cases selling your car may seem like the best solution, there’s need to reconsider the implications of that decision versus those taking a loan. Sure, you may not be comfortable with the idea of paying back with interest. Or maybe it’s the simple idea that it’s a loan, period, that disinterests you.

Whatever is holding you back, push it to the back of your brain and do a little research. The hassle of associated with marketing your car, the high risks of eventual underselling your car or the chance that the effort to sell your car for quick cash may not pay off; is these factors worth it? Would you not rather a faster means of getting money? One that will take at most a week? And the fact that there are very few requirements that you can meet is a bonus. Did I mention that you get your title and the spare set of keys you give back to the lender once you repay the loan? This means that as long as you repay the loan, you get to keep your car.

If you’re still in doubt or don’t seem to find all the information you need for these types of loans, there a few options you can take to keep you informed. For one, you can talk to a finance specialist. He/she will give you information on what title loans are, what their cost implications might be, how to get them and any other information you might need. Additionally, the internet is a great avenue for finding all the answers to questions you have.

All in all, the idea of getting a car title loan is recommended, at least it’s better than selling your car. If you are in need of a title loan in Toronto, call us today. Our representatives are ready and always willing to answer your questions. Our title loan rates are also the best in the region.